Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Recommended umbrella coverage
$1,000,000
Total assets + future income at risk
$1,250,000
Uncovered exposure gap
$950,000
Highest existing underlying liability limit
$300,000
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How to use this
- 1Enter net worth (assets minus debts) ($).
- 2Enter annual household income ($).
- 3Enter years of future income to protect from garnishment.
- 4Enter auto policy liability limit ($).
- 5Enter homeowners liability limit ($).
- 6Read your recommended umbrella coverage on the right — it updates as you type.
- 7Hit Share to keep the scenario or send it to someone.
About this calculator
An umbrella policy sits on top of your auto and homeowners liability limits and kicks in once those underlying limits are exhausted, extending coverage in $1 million increments typically for a few hundred dollars a year. This calculator focuses specifically on sizing: it takes your net worth, future earnings you'd want protected from wage garnishment in a lawsuit, and your existing underlying liability limits, then shows the exposure gap an umbrella policy should close — different from a general 'how much umbrella should I buy' rule of thumb, this ties the number to your actual balance sheet plus a buffer for future income at risk in a large judgment.
Worked example
Using the values the calculator loads with:
Inputs
- Net worth (assets minus debts): 850000 $
- Annual household income: 160000 $
- Years of future income to protect from garnishment: 5
- Auto policy liability limit: 300000 $
- Homeowners liability limit: 300000 $
Results
- Recommended umbrella coverage: $1,000,000
- Total assets + future income at risk: $1,250,000
- Uncovered exposure gap: $950,000
- Highest existing underlying liability limit: $300,000
What each field means
Inputs
- Net worth (assets minus debts) ($)
- The net worth (assets minus debts) used in the calculation, measured in $. Starts at 850000 $ so you have a working example on load.
- Annual household income ($)
- The annual household income used in the calculation, measured in $. Starts at 160000 $ so you have a working example on load.
- Years of future income to protect from garnishment
- The years of future income to protect from garnishment used in the calculation. Starts at 5 so you have a working example on load. Accepted range: 0–20.
- Auto policy liability limit ($)
- The auto policy liability limit used in the calculation, measured in $. Starts at 300000 $ so you have a working example on load.
- Homeowners liability limit ($)
- The homeowners liability limit used in the calculation, measured in $. Starts at 300000 $ so you have a working example on load.
Results
- Recommended umbrella coverage
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total assets + future income at risk
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Uncovered exposure gap
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Highest existing underlying liability limit
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why does net worth matter more than income for sizing umbrella coverage?
In a lawsuit, a judgment creditor can generally go after non-exempt assets you already own more directly than future wages, which in many states have partial garnishment protections and practical collection limits. The bigger your net worth, the more there is to lose outright, which is why umbrella sizing usually starts from total assets, not income alone.
Do umbrella policies require minimum underlying liability limits?
Yes. Insurers typically require you to carry at least $250,000–$300,000 in auto liability and $300,000 in homeowners liability before they'll write an umbrella policy, since the umbrella only pays after those underlying limits are exhausted, not from dollar one.
How much does umbrella insurance typically cost?
Roughly $150–$400 per year for the first $1 million of coverage, with each additional million usually cheaper, often $75–$150 more, since it's a fairly rare and standardized risk for insurers to price. It's consistently one of the cheapest layers of protection per dollar of coverage available.
Does umbrella insurance cover intentional acts or business liability?
No. Standard personal umbrella policies exclude intentional harm, business or professional liability (you need separate professional liability or business umbrella coverage for that), and contractual liability. It's designed for personal liability exposure — auto accidents, dog bites, slip-and-falls, and similar claims.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
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Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Umbrella Insurance Coverage Gap Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/umbrella-coverage-gap
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/umbrella-coverage-gap" target="_blank" rel="noopener">Umbrella Insurance Coverage Gap Calculator — RevenueLab</a> (2026).</p>
Source: [Umbrella Insurance Coverage Gap Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/umbrella-coverage-gap) (2026).